Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

July 14, 2021

Financial Results for FY2020 Q4Company name: Sansan, Inc.
Listing:
Tokyo Stock Exchange
Securities code:
4443
URL:
https://www.corp-sansan.com/
Representative:
Chikahiro Terada, Representative Director & CEO
Inquiries:
Muneyuki Hashimoto, Director, Executive Officer, CFO
TEL:+81-3-6758-0033
Scheduled date of annual general meeting of shareholders:August 31, 2021
Scheduled date to commence dividend payment:–
Scheduled date to file annual securities report:
August 31, 2021
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended May 31, 2021 (from June 1, 2020 to May
31, 2021)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
May 31, 2021
May 31, 2020

Operating profit

Millions of yen% Millions of yen

16,184
13,362

Note: Comprehensive income

21.1
30.9

Reference:% Millions of yen

736
757

375
435

(2.7)
–

% Millions of yen

%

182
339

(46.2)(13.9)––For the fiscal year ended May 31, 2021: ¥1,820 million [449.3%]
For the fiscal year ended May 31, 2020: ¥331 million [–%]

Basic earnings per
share
Fiscal year ended
May 31, 2021
May 31, 2020

Profit attributable toowners of parent

Ordinary profit

Diluted earnings
per share

Return on equity

Ordinary profit/
total assets

Operating profit/
net sales

Yen

Yen

%

%

%

5.86
10.98

5.78
10.86

1.6
4.9

1.6
2.7

4.6
5.7

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended May 31, 2021: ¥(285) million
For the fiscal year ended May 31, 2020: ¥(51) million(2) Consolidated financial position
Total assets
As of
May 31, 2021
May 31, 2020
Reference:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

24,31022,81912,584
10,55251.5
46.2

403.57338.89EquityAs of May 31, 2021:
As of May 31, 2020:¥12,516 million¥10,541 million

(3)Consolidated cash flows
Cash flows fromoperating activities

Fiscal year ended
May 31, 2021
May 31, 2020

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

3,011
2,822

(551)
(7,189)(2,902)
11,563

12,223
12,663

2. Cash dividends
Annual dividends

Fiscal year ended
May 31, 2020
Fiscal year ended
May 31, 2021
Fiscal year ending
May 31, 2022
(Forecast)

Total cash
dividends(Total)Firstquarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Yen Millions of yen

Total

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)
%

%

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

3. Consolidated earnings forecasts for the fiscal year ending May 31, 2022 (from June 1, 2021 to
May 31, 2022)
Net sales

Fiscal year ending
May 31, 2022

Millions ofyen
20,230to
20,716

Operating profit
%
25.0
to
28.0

Millions of%yen
450 (38.9)
to
to
800
8.6

(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
shareMillions of
yen
–

%
–

Millions of
yen
–

%
–

Yen
–

Note: Although the Company is expecting to record a surplus in ordinary profit and profit attributable to owners of parent,
it is difficult to make a precise forecast. Accordingly, the Company will refrain from disclosing a concrete forecast at
this point in time. For details, please refer to “(4) Future outlook” under “1. Qualitative information on consolidated
financial results for the fiscal year ended May 31, 2021” on page 5 of the attached materials.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations:Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: Yes
d. Restatement: None
Note: For details, please refer to the section of “Changes in accounting estimates” of “(5) Notes toconsolidated financial statements” under “3. Consolidated financial statements and significant
notes thereto” on page 15 of the attached materials.
(3) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of May 31, 2021

31,183,645 shares

As of May 31, 2020

31,138,853 sharesb. Number of treasury shares at the end of the period
As of May 31, 2021

40 shares

As of May 31, 2020–

c. Average number of shares outstanding during the period
Fiscal year ended May 31, 2021

31,147,577 sharesFiscal year ended May 31, 2020

30,928,528 shares(Reference) Overview of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended May 31, 2021 (from June 1, 2020 to May
31, 2021)(1) Non-consolidated operating results
Net sales
Fiscal year ended
May 31, 2021
May 31, 2020

Operating profit

Millions of yen

16,042
13,358% Millions of yen

20.1
31.0

Basic earnings per
share
Fiscal year ended
May 31, 2021
May 31, 2020

(Percentages indicate year-on-year changes.)

765
758

Ordinary profit% Millions of yen

0.9–

Diluted earnings per
share

Yen

Yen

15.75
12.56

15.53
12.42

684
484

Profit% Millions of yen

41.4
–

490
388

%

26.3
–

(2) Non-consolidated financial position
Total assets
As of
May 31, 2021
May 31, 2020
Reference:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

24,61022,881

12,933
10,61252.3
46.3

414.74340.82EquityAs of May 31, 2021:
As of May 31, 2020:¥12,867 million¥10,602 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the consolidated forecasts stated in these materials, are based on
information currently available to the Company and certain assumptions deemed reasonable. Results
may differ materially from the consolidated forecasts due to various factors.

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

Attached Material
Index
1. Qualitative information on consolidated financial results for the fiscal year ended May 31, 2021 .......... 2(1) Explanation of operating results ......................................................................................................... 2(2) Review of financial position............................................................................................................... 4(3) Overview of cash flows ...................................................................................................................... 4(4) Future outlook .................................................................................................................................... 5
2. Basic concept regarding selection of accounting standards ...................................................................... 6
3. Consolidated financial statements and significant notes thereto............................................................... 7(1) Consolidated balance sheet ................................................................................................................ 7(2) Consolidated statement of income and consolidated statement of comprehensive income ............... 9
Consolidated statement of income...................................................................................................... 9
Consolidated statement of comprehensive income .......................................................................... 10(3) Consolidated statement of changes in equity ................................................................................... 11(4) Consolidated statement of cash flows .............................................................................................. 13(5) Notes to consolidated financial statements ....................................................................................... 15
Notes on premise of going concern .................................................................................................. 15
Changes in accounting estimates ...................................................................................................... 15
Additional information ..................................................................................................................... 15
Segment information ........................................................................................................................ 15
Per share information ....................................................................................................................... 18
Significant events after reporting period .......................................................................................... 19- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

1. Qualitative information on consolidated financial results for the fiscal year ended
May 31, 2021
(1) Explanation of operating results
Under the mission of “Turning encounters into innovation” and the vision of “Become business
infrastructure,” the Group is developing services to promote digital transformation (DX) to change theworking styles of companies and businesspeople facing various business issues by using new
approaches that combine “systems that use technology and data input to digitize analog data” with“cloud software.”In the fiscal year under review, the Group engaged in initiatives such as strengthening the sales
structure, including strategic hiring, in order to realize continuous growth of net sales. Furthermore, theGroup enhanced various functions for “Sansan,” a B2B business card-based contact management
service, and “Eight,” a business card management app.
Moreover, as a result of working on strengthening the sales structure and conducting advertising,focused on TV commercials, aimed at realizing growth in “Bill One,” the Group acquired 239
subscriptions in the fiscal year under review, which constituted high growth of 73.2% from the previous
quarter-end. By working on personnel hiring, advertising activities, and making improvements to theservice, the Group aims to amass more than 1,000 subscriptions by the fiscal year ending May 31,
2022.
In addition, as announced on May 19, 2021, the Company has concluded a capital and business allianceagreement with Fringe81 Co., Ltd. (hereinafter “Fringe81”) and acquired preferred stock in accordancewith a capital increase through third-party allotment conducted by Fringe81. Through collaboration
between “Sansan” and Fringe81’s “Unipos” service, provision of the Company’s expertise cultivated invarious areas of the SaaS business and other measures, the Company aims to increase the corporate
value of both companies over the medium to long term. Furthermore, if “Unipos” grows into a serviceof a certain scale, the Company will consider making Fringe81 a consolidated subsidiary in the future
and pursuing further synergistic effects.
As a result, net sales for the fiscal year under review totaled ¥16,184,553 thousand (up 21.1% year onyear), and despite the negative impact from the COVID-19 pandemic, results were overall solid. Grossprofit totaled ¥14,192,200 thousand (up 23.0% year on year), and gross profit margin was 87.7% (up1.3 points year on year). Operating profit was ¥736,613 thousand (down 2.7% year on year) due to anincrease in advertising expenses, personnel expenses, etc. in the fourth quarter to further promotestrategies to realize growth in the medium to long term in light of the steady progress in businessperformance to date. Ordinary profit was ¥375,062 thousand (down 13.9% year on year). Profit
attributable to owners of parent was ¥182,654 thousand (down 46.2% year on year) due to various
investments aimed at achieving medium- to long-term sales growth, just as for operating profit andordinary profit, and greater loss from share of loss of entities accounted for using equity method,among other factors. Note the forecast for profit attributable to owners of parent has not been disclosed
because the amount of deferred tax assets to be recorded is still under analysis.
Results by segment are as follows.
Our services, our business models, our competitive advantages, etc. are described on the following IR
section of the Company’s website. Please refer to the URL below for details.
IR section (description of Business Information):
https://ir.corp-sansan.com/en/ir/management/businessinformation.html(i) Sansan Business
The Company is developing services in the B2B business card management service market. As theCompany has grown, this market has seen 12-fold expansion from 2012 to 2019. The Sansan
Business, operated by the Company, holds an 83.5% share (Note 1.) in this market. Moreover,further expansion of the size of this market is continuing, which is mainly a result of recent changes
to employee working styles like remote work due to the spread of COVID-19, new ways of- 2 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

thinking toward DX, and greater attention being attracted to the SaaS (Software as a Service)products. As for the DX market, its worth in 2030 is forecasted to be ¥3,042.5 billion (an increaseof ¥2,251.3 billion since 2019) (Note 2.), while the SaaS market in Japan is forecasted to reach¥1,117.8 billion by 2024 (an increase of ¥516.2 billion since 2019) (Note 3.).
For the fiscal year under review, the Company engaged in strengthening the sales structure throughstrategic hiring and expanding its optional functions, aimed at further increasing the number ofsubscriptions and the monthly sales per subscription for “Sansan.” While the spread of COVID-19
negatively affected the acquisition of new subscriptions, we succeeded in enhancing our sales
system and steadily acquired new customers among major manufacturers and medium to small
enterprises. As a result, at the end of the fiscal year under review, the number of “Sansan”
subscriptions increased steadily to 7,744, up 14.7% year on year. In addition, monthly sales per
subscription rose only slightly to ¥170 thousand, up 4.9% year on year due to sluggishness in somesales comprised of fees for the service of providing “Sansan” during the initial adoption period as aresult of the effect of COVID-19. As a result of carrying out ongoing initiatives to expand use
among existing customers to achieve a stronger customer foundation, the average monthly churnrate over the past 12 months (Note 4.) was 0.63% (an increase of 0.03 points year on year),maintaining a low churn rate of below 1% despite COVID-19 pandemic.
As a result, net sales for the fiscal year under review totaled ¥14,583,951 thousand (up 18.7% year
on year), of which recurring net sales (fixed revenue) in “Sansan” totaled ¥13,800,163 thousand(up 23.6% year on year) and other net sales totaled ¥783,787 thousand (down 29.7% year on year).
Segment profit totaled ¥6,143,129 thousand (up 28.1% year on year).
Notes:1. Based on “Latest trends in business card management services and sales services[SFA/CRM/online business card exchange]” by Seed Planning, Inc.
2. Based on “2020 Outlook of the Digital Transformation Market” by Fuji Chimera
Research Institute
3. Based on “2020 New Software Business Markets” by Fuji Chimera Research Institute
4. Ratio of decrease in monthly fees associated with subscription cancellations to totalmonthly fees for existing subscriptions for “Sansan.”(ii) Eight BusinessIn the Eight Business, the Company bases the business on the business card management app“Eight” that enables users to use the profile management and business card management features at
no cost. On top of this, the Company provides the B2C services, “Eight Premium,” for individuals
who want access to extra user functions and the B2B services such as “Eight Company Premium,”a service that allows the sharing of business cards registered on “Eight” within a company, “Eight
Marketing Solutions,” a service that enables advertisements to be disseminated to “Eight” users,“Meets,” a business event that increases productivity by efficiently matching buyers and sellers,and “Eight Career Design,” a recruitment related service that enables hiring companies (corporateclient users) to approach job seekers (individual users) on the job search platform.
In the fiscal year under review, the Company worked on strengthening monetization of various
B2B services through “Eight Company Premium” and other methods, and held two “Climbers”
events online as new business events targeting young businesspeople. For the second event, which
was held in May 2021, the Company received the highest number of entries for one of its events. In
addition, aiming to increase the number of users of “Eight,” the Company started providing “Eight
ONAIR,” business event media, in May 2021 to provide business event information to “Eight”
users and support event organizers in attracting attendees to events. As a result, the number of“Eight Company Premium” subscriptions at the end of the fiscal year under review totaled 2,253,
an increase of 46.8% year on year and the number of “Eight” users (Note 5.) totaled 2.92 million,
an increase of 0.21 million year on year. Additionally, results from our consolidated subsidiarylogmi, Inc. (“logmi”) began to contribute to results in September 2020 (recorded in the segment’s
B2B services sales).
- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

As a result, net sales for the fiscal year under review totaled ¥1,604,351 thousand (up 48.8% year
on year), of which net sales from B2C services totaled ¥296,722 thousand (up 1.8% year on year)
and net sales from B2B services totaled ¥1,307,629 thousand (up 66.3% year on year). Segment
loss was recorded at ¥732,622 thousand (compared to ¥894,281 thousand in the previous fiscal
year) due to being in the phase in which upfront investments were being made to increase future
profitability.
Note: 5. Number of confirmed users who registered their business card to their profile after
downloading the application(2) Review of financial position
AssetsTotal assets at the end of the fiscal year under review were ¥24,310,195 thousand, up ¥1,490,427
thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥1,403,351
thousand as a result of the purchase of investment securities and year-end valuation, and an increase of¥185,662 thousand in goodwill recorded as a result of making logmi a subsidiary through theacquisition of its shares.
Liabilities
Total liabilities at the end of the fiscal year under review were ¥11,725,297 thousand, down ¥541,849
thousand from the end of the previous fiscal year. This was primarily due to a decrease of ¥3,013,174
thousand in repayments of long-term borrowings, a decrease of ¥181,922 thousand in current portion of
long-term borrowings, an increase of ¥1,429,855 thousand in advances received from receiving a lumpsum payment of contract term fees from customers and an increase of ¥571,290 thousand in deferred
tax liabilities.
Net assets
Net assets at the end of the fiscal year under review were ¥12,584,898 thousand, up ¥2,032,276
thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥76,295
thousand in capital as a result of exercise of share acquisition rights, an increase of ¥76,295 thousand incapital surplus, an increase of ¥1,622,129 thousand in valuation difference on available-for-salesecurities as a result of the year-end valuation of investment securities and an increase of ¥182,654
thousand in retained earnings due to recording of profit attributable to owners of parent.
(3) Overview of cash flows
Cash and cash equivalents (hereinafter “capital”) for the fiscal year ended May 31, 2021 totaled¥12,223,291 thousand, a decrease of ¥440,154 thousand compared to the previous fiscal year (down
3.5% year on year). This decrease includes the effect of ¥2,357 thousand due to exchange fluctuations
on capital.
The respective cash flow positions and the factors thereof in the fiscal year under review are as follows.
Cash flows from operating activities
The amount of capital provided by operating activities totaled ¥3,011,227 thousand (compared to¥2,822,265 thousand provided in the same period of the previous fiscal year). The main reasons for thisincrease in capital were recognition of profit before income taxes of ¥370,414 thousand, recognition ofdepreciation, non-cash expense, of ¥691,356 thousand, and an increase of accounts payable - other of¥620,663 thousand, as well as an increase of ¥1,401,290 thousand in advances received, and the main
factors for the decrease in capital were an increase in trade receivables of ¥121,524 thousand, adecrease in accrued consumption taxes of ¥162,259 thousand, a decrease in other liabilities of ¥66,088
thousand and a decrease in income taxes paid of ¥246,997 thousand.

- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

Cash flows from investing activities
The amount of capital used in investing activities totaled ¥551,416 thousand (¥7,189,107 thousand usedin the previous fiscal year). This was primarily due to purchase of shares of subsidiaries and associatesof ¥660,573 thousand, purchase of intangible assets of ¥636,059 thousand, purchase of investment
securities of ¥336,320 thousand, purchase of property, plant and equipment of ¥273,646 thousand andproceeds from sales of investment securities of ¥1,680,107 thousand.
Cash flows from financing activities
The amount of capital used by financing activities totaled ¥2,902,323 thousand (compared to¥11,563,071 thousand provided in the same period of the previous fiscal year). This was primarily due
to repayments of long-term borrowings of ¥3,220,929 thousand, a net increase in short-termborrowings of ¥173,938 thousand and proceeds from issuance of shares of ¥152,292 thousand.
(4) Future outlook
In the fiscal year ending May 31, 2022, in addition to expecting that this uncertain businessenvironment caused by the COVID-19 crisis will continue, the Company has adopted a range-based
outlook disclosure as the Company plans to make various investments in an agile and flexible manneraccording to the business environment and business progress in order to accelerate the net sales growthrate over the medium to long term.
As consolidated net sales are expected solid growth in each business because the negative impact of the
COVID-19 crisis on business results has run its course, the growth rate is expected to acceleratecompared to the same period of the previous year. Specifically, we expect a steady increase in thenumber of subscriptionss for “Sansan” and a recovery in other net sales other than recurring net sales.
In addition, “Bill One” is expected to see continued expansion in the number of subscriptionss.
Many of the services that the Group is engaged in are growing rapidly while creating new markets, andat this point in time, we are not focusing on maximizing profits, but rather on the medium to long term
net sales growth. Based on this policy, in the fiscal year ending May 31, 2022, we plan to mainly
strengthen group-wide recruitment of human resources and marketing and advertising activities for“Sansan” and “Bill One.”As a result of the above, in the fiscal year ending May 31, 2022, the Company is expecting to see
consolidated net sales between ¥20,230 million and ¥20,716 million (up 25.0% to 28.0% year on year),and consolidated operating profit between ¥450 million and ¥800 million (down 38.9% to up 8.6% year
on year). Consolidated ordinary profit and profit attributable to owners of parent are expected to be in
the black, but specific outlook figures are not disclosed at this time due to the difficulty in making
reasonable estimates for some non-operating profit and loss items. Net sales of the Sansan Business,
which accounts for the majority of the current consolidated results, are expected to increase byapproximately 24% to 27% year on year.
As assumptions for the earnings forecast, the upper end of the range assumes that social concerns about
COVID-19 will recede significantly by the end of 2021 due to various factors, including vaccination,and that the economy will enter a more recovery phase. On the other hand, the lower end of the range
assumes that there is no improvement in the number of infected people, etc., and that the negative
impact of the COVID-19 crisis continues throughout the period.

- 5 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

2. Basic concept regarding selection of accounting standards
In consideration of comparability with other companies in Japan, the Group applies Japanese accounting
standard.

- 6 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Thousands of yen)
As of May 31, 2020
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets- 7 -As of May 31, 2021

12,815,225
441,060
410,582
176,945(3,621)
13,840,192

12,389,111
571,096
469,588
117,263(4,877)
13,542,182

653,544(302,127)
351,416
186,405(123,354)
63,051
414,467

825,692(405,842)
419,849
257,213(172,164)
85,049504,899925,803–
261
926,064

1,023,375
185,662149
1,209,187

6,941,596
549,412145,1852,850
7,639,043
8,979,576
22,819,768

8,344,948
702,472–
6,505
9,053,926
10,768,012
24,310,195

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4(Thousands of yen)
As of May 31, 2020
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 8 -As of May 31, 2021

102,922
20,0001,267,490
596,265
225,471429,584
5,289,822
289,551
114,449
8,335,558

195,216200,000
1,085,568
1,175,172
154,825
271,263
6,719,677
359,373
82,115
10,243,213

3,892,598–
38,9903,931,588
12,267,147

879,423571,290
31,3691,482,083
11,725,297

6,236,650
3,977,043
344,184–
10,557,879

6,312,946
4,053,338
526,839(262)
10,892,863–(15,921)(15,921)
10,663–
10,552,621
22,819,768

1,622,129
1,130
1,623,260
65,886
2,888
12,584,898
24,310,195

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Thousands of yen)
Fiscal year ended
May 31, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Subsidy income
Cancellation penalty income
Gain on sale of investment securities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share issuance costs
Stock market listing expenses
Commission expenses
Foreign exchange losses
Loss on cancellation of rental contracts
Penalty loss on cancellation of rental contracts
Loss on investments in investment partnerships
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on cancellation of events
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent- 9 -Fiscal year ended
May 31, 2021

13,362,370
1,821,319
11,541,051
10,783,785
757,266

16,184,553
1,992,352
14,192,200
13,455,587
736,613

1,989
–
2,198
3,007
–
1,030
8,226

612
57,475
10,544
3,654
32,897
1,788
106,972

18,681
28,102
15,41019,458
1,012
187,784–
2,285

23,378––25,232
1,829–
92,953
12,746

51,247285,143

6,064
330,047
435,444

27,239468,522375,062

–
–

47
47

8,428
37,85454,087
100,370335,074
140,588(145,185)(4,596)339,670–339,670

4,695
–
–
4,695
370,414202,530(13,109)
189,421
180,993(1,661)
182,654

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

Consolidated statement of comprehensive income(Thousands of yen)
Fiscal year ended
May 31, 2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

Fiscal year ended
May 31, 2021

339,670

180,993–(8,313)(8,313)331,357

1,622,129
17,052
1,639,181
1,820,174

331,357

1,821,836–(1,661)

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4(3) Consolidated statement of changes in equity
Fiscal year ended May 31, 2020
(Thousands of yen)
Shareholders’ equity
Total shareholders’equityShare capital

Capital surplus

Retained earnings

2,812,501

1,500,000(942,592)

3,369,909

3,424,149

3,424,149–

6,848,298

Deficit disposition–(947,106)

947,106–

Profit attributable toowners of parent––

339,670339,670

Net changes in items
other than shareholders’equity––––Total changes during period

3,424,149

2,477,043

1,286,777

7,187,969

Balance at end of period

6,236,650

3,977,043

344,184

10,557,879

Balance at beginning of
periodChanges during period
Issuance of new shares

Accumulated other comprehensive income
Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
incomeShare acquisitionrightsTotal net assets(7,607)(7,607)

10,663

3,372,965

Issuance of new shares

–

–

–

6,848,298

Deficit disposition

–

–

–

–

Profit attributable toowners of parent

–

–

–

339,670

Net changes in items
other than shareholders’equity(8,313)(8,313)–(8,313)

Total changes during period(8,313)(8,313)–

7,179,656

Balance at end of period(15,921)(15,921)

10,663

10,552,621

Balance at beginning of
periodChanges during period- 11 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

Fiscal year ended May 31, 2021
(Thousands of yen)
Shareholders’ equity
Total shareholders’equityShare capital

Capital surplus

Retained earnings

6,236,650

3,977,043

344,184–

10,557,879

76,29576,295––

152,591

Purchase of treasury shares

–

–

–

(262)

(262)

Profit attributable to ownersof parent––

182,654–

182,654

Net changes in items otherthan shareholders’ equity

–

–

–

–

–

Total changes during period

76,29576,295

182,654(262)

334,983

6,312,946

4,053,338

526,839(262)

10,892,863

Balance at beginning of period

Treasury shares

Changes during period
Issuance of new shares

Balance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive income

Shareacquisitionrights–(15,921)(15,921)

10,663–

10,552,621

Issuance of new shares

–

–

–

–

–

152,591

Purchase of treasury shares

–

–

–

–

–

(262)

Profit attributable to owners ofparent

–

–

–

–

–

182,654

Net changes in items otherthan shareholders’ equity

1,622,129

17,052

1,639,181

55,223

2,888

1,697,292

Total changes during period

1,622,129

17,052

1,639,181

55,2232,888

2,032,276

Balance at end of period

1,622,129

1,130

1,623,260

65,886

2,888

12,584,898

Balance at beginning of period

Non-controlling
Total net assetsinterests

Changes during period- 12 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4(4) Consolidated statement of cash flows(Thousands of yen)
Fiscal year ended
May 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Loss on retirement of non-current assets
Share-based payment expenses
Gain on reversal of share acquisition rights
Share issuance costs
Loss on cancellation of rental contracts
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on closure ofbusiness locations
Interest and dividend income
Interest expenses
Commission expenses
Loss (gain) on sale of investment securities
Loss (gain) on investments in investment partnerships
Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities- 13 -

Fiscal year ended
May 31, 2021

335,074
615,862–
37,854
8,428––
28,102
187,784916
90,587

370,414
691,356
15,053–
4,695
33,690
(47)
–
–
1,225
69,658(6,960)–(1,989)18,681
19,454–
2,285(58,087)
23,378157(32,897)
12,746

51,247285,143(118,352)(84,692)
6,268
6,753
(108,523)
1,366,665
246,512102,380
43,387
2,847,728
2,216(19,721)(7,957)2,822,265(121,524)(50,571)
61,03490,035620,663
1,401,290(162,259)(66,088)
35,0313,224,100
58,608(24,483)(246,997)
3,011,227

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4(Thousands of yen)
Fiscal year ended
May 31, 2020
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries and associates
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments of leasehold deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from issuance of share acquisition rights
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 14 -

Fiscal year ended
May 31, 2021

(260,527)(535,874)(5,901,328)––(273,646)(636,059)(336,320)
1,680,107(660,573)–(132,529)(507,635)
16,259(7,189,107)(186,678)(5,715)(551,416)

2,000
5,460,545(686,760)
6,820,196–(32,910)
11,563,071

173,938–(3,220,929)
152,292
21,879(29,504)(2,902,323)(1,279)2,357

7,194,950
5,468,495
12,663,445(440,154)
12,663,445
12,223,291

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4(5) Notes to consolidated financial statements
Notes on premise of going concern
Not applicable.
Changes in accounting estimates
Changes in the useful lives of property, plant and equipment.
From the fiscal year under review, the Company has revised its estimates of the useful lives of someproperty, plant and equipment from three years to five years. This change was made to change theuseful lives of facilities attached to buildings and tools, furniture and fixtures primarily related to thehead office to better reflect reality in light of actual utilization of the office and relevant assets. As aresult of this change, operating profit, ordinary profit and profit before income taxes for the fiscal year
ended May 31, 2021 are each ¥105,386 thousand higher than they would have been under the previous
estimates of useful lives.
Additional information
Accounting estimates associated with the spread of COVID-19
Regarding the impact of COVID-19, it is difficult to accurately estimate how it will spread in the
future, when it will end, etc. In the next fiscal year, based on the assumption that the economic impactof the spread of COVID-19 will continue until the end of the fiscal year ending May 31, 2022,
accounting estimates, such as the recoverability of deferred tax assets, were made.
Segment informationa. Segment information
1. Description of reportable segments
The reportable segments used by the Group are components for which discrete financial
information is available, and whose operating results are regularly reviewed by the Board of
Directors, in particular, to make decisions about resources to be allocated to the segments andassess their performance.
In the operation of its business activities, the Group has established business divisions andcompanies to engage in specific services, and it formulates comprehensive strategies for theservices that each business division and company provides.
Accordingly, the Group’s operations are made up of segments engaged in specific services
under the basic operating structures of business divisions or companies, and it has tworeportable segments of the “Sansan Business” and the “Eight Business.”
Descriptions of the services belonging to each segment are stated below.
Reportable segments
Sansan Business
Eight Business

Description of services in segment
Provision of “Sansan,” a B2B cloud-based business card management
service
Provision of “Eight,” a business card management app

2. Methods of calculating the amounts of net sales, profit or loss, assets, liabilities, and otheritems for each reportable segment
The accounting method used for operating segments reported is the same as the accounting
method employed to prepare the consolidated financial statements.”
The profit stated for the reportable segments is a figure based on operating profit.

- 15 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

3. Information on the amounts of net sales, profit or loss, assets, liabilities, and other items foreach reportable segment
Fiscal year ended May 31, 2020
Reportable segments(Thousands of yen)Amount in the
consolidated
Adjustment
financial(Note) 1
statement(Note) 2

SansanBusiness

Eight BusinessTotal

Net sales
Sales to external customers
Intersegment sales or transfers

12,284,335–

1,078,035–

13,362,370–––

13,362,370
–

Total

12,284,335

1,078,035

13,362,370–

13,362,370

Segment profit (loss)

4,794,017(894,281)

3,899,736(3,142,469)

757,266

319,930

12,085332,016

283,845615,862

Other items
Depreciation

Notes: 1. The adjustments stated for segment profit (loss) and depreciation are the amounts of corporate expenses not
attributable to any reportable segment and mostly consist of general and administrative expenses.
2. Segment profit (loss) is adjusted with operating profit in the consolidated statement of income.
3. Segment assets and liabilities have not been shown, as information relating to assets and liabilities are notregularly provided to the chief operating decision maker and are not subject to the assessment of performance.

Fiscal year ended May 31, 2021
Reportable segments(Thousands of yen)Amount in the
consolidated
Adjustment
financial(Note) 1
statement(Note) 2

SansanBusiness

Eight BusinessTotal

Net sales
Sales to external customers
Intersegment sales or transfers

14,583,951–

1,600,601
3,750

16,184,553
3,750–(3,750)16,184,553
–

Total

14,583,951

1,604,351

16,188,303(3,750)16,184,553

Segment profit (loss)

6,143,129(732,622)

5,410,507(4,673,894)

736,613415,278

17,456432,735

258,621691,356

Other items
Depreciation

Notes: 1. The adjustments stated for segment profit (loss) and depreciation are the amounts of corporate expenses not
attributable to any reportable segment and mostly consist of general and administrative expenses.
2. Segment profit (loss) is adjusted with operating profit in the consolidated statement of income.
3. Segment assets and liabilities have not been shown, as information relating to assets and liabilities are notregularly provided to the chief operating decision maker and are not subject to the assessment of performance.

b. Information associated with reportable segments
1. Information for each product or service
This information is omitted because the same information has been presented in Segment
information.
2. Information for each region(1) Net sales
This has been omitted because net sales to external Japanese customers account for morethan 90% of net sales on the consolidated statement of income.
- 16 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4(2) Property, plant and equipment
This has been omitted because the value of property, plant and equipment in Japanaccounts for more than 90% of the value of property, plant and equipment on the
consolidated balance sheet.
3. Information for each of main customers
This has been omitted because there is no external customer that accounts for 10% or more of
net sales recorded on the consolidated statement of income.
c. Disclosure of impairment losses on non-current assets for each reportable segment
Fiscal year ended May 31, 2020
Impairment losses of ¥6,387 thousand for the Sansan Business, ¥9,648 thousand for the Eight
Business, and ¥21,818 thousand for corporate expenses not belonging to any reportable segment
were recorded.
Fiscal year ended May 31, 2021
Not applicable.
d. Amortization and unamortized balance of goodwill for each reportable segment
Fiscal year ended May 31, 2020
Not applicable.
Fiscal year ended May 31, 2021
(Thousands of yen)Amount ofamortization
Balance at end of
periodCorporate andSansan Business

Eight Business

Total

–

15,053–

15,053–

185,662–

185,662

eliminations

e. Information about gain on bargain purchase for each reportable segment
Not applicable.

- 17 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

Per share information
Fiscal year ended May 31, 2020
(from June 1, 2019 to May 31, 2020)(Yen)
Fiscal year ended May 31, 2021
(from June 1, 2020 to May 31, 2021)

Net assets per share

338.89403.57

Basic earnings per share

10.98

5.86

Diluted earnings per share

10.86

5.78

Note:

Basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Fiscal year ended May 31, 2020
(from June 1, 2019 to May 31, 2020)

Fiscal year ended May 31, 2021
(from June 1, 2020 to May 31, 2021)

Basic earnings per share
Profit attributable to owners ofparent(Thousands of yen)339,670

182,654––

Profit attributable to owners ofparent related to common shares(Thousands of yen)339,670

182,654

Average number of common shares
outstanding during the period(Shares)

30,928,528

31,147,577

Adjustments stated for profit
attributable to owners of parent(Thousands of yen)––

Increase in number of commonshares(Shares)

340,707448,866[Of which share acquisition rights](Shares)[340,707][448,866]

Overview of dilutive shares that are
not included in the calculation ofdiluted earnings per share as they
have no dilutive effects––

Amounts not attributable tocommon shareholders(Thousands of yen)

Diluted earnings per share- 18 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q4

Significant events after reporting period
Purchase of investment securities
The Company used ¥1,900,000 thousand to acquire 1,900 shares of Class A preferred stock issued by
Fringe81 Co., Ltd. through third-party allotment on June 30, 2021, based on the resolution at themeeting of the Board of Directors that took place on May 19, 2021.
The total amount of funds required for acquiring the Class A preferred stock is provided throughborrowing from financial institutions.
Issuance of share acquisition rights (compensatory stock options)
At the meeting of the Board of Directors held on July 14, 2021, the Company resolved to issue the 6th
Share Acquisition Rights to Directors and Executive Officers of the Company in accordance with theprovisions of Articles 236, 238, and 240 of the Companies Act.
6th Share Acquisition Rights
Number of share acquisition rights

200 units

Class and number of shares to be acquired upon Common shares of the Company, 20,000 shares
exercise of the share acquisition rights(100 shares per one unit acquisition right)
Issuance price of share acquisition rights¥109,000 per one unit acquisition right

Exercise price of share acquisition rights¥837,000 per one unit acquisition rightIssuance price and additional paid-in capital in
the event of issuance of shares upon exercise ofshare acquisition rights

Issuance price: ¥8,370 per one share
Additional paid-in capital: ¥4,185 per one share

Allotment date of share acquisition rights

August 24, 2021

Persons subject to allotment of share acquisition 6 Directors of the Company
rights
13 Executive Officers of the Company
Exercise period of share acquisition rights

From September 1, 2022 to August 23, 2031

Exercise conditions of share acquisition rights**

1. The person to whom the share acquisition rights are allotted (the “share acquisition rights holder”) may exercise
his or her share acquisition rights only if the amount of net sales in the Company’s consolidated statement ofincome for the fiscal year ending May 31, 2022 has exceeded ¥20,386 million.
2. The share acquisition rights holders are required to have a position in the Company or a subsidiary and associateof the Company as Director, Audit & Supervisory Board Member or employee at the time of exercising theshare acquisition rights. However, this shall not apply in the event of resignation due to the expiration of theterm of office, mandatory retirement, or when a justifiable reason is acknowledged at a meeting of the Board of
Directors.
3. In the event the share acquisition rights holder dies, inheritance shall not be recognized.
4. Pledging of share acquisition rights, or the creation of security interests shall not be permitted.
5. The share acquisition rights may not be exercised if, in so doing, the total number of the Company’s issued
shares at that time would exceed the total number of authorized shares.
6. It shall not be possible to exercise fractions less than one unit of the share acquisition rights.

- 19 -